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setting up a PCF Rate this Topic:
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pwalk
Posted : Tuesday, November 15, 2005 9:30:32 PM
Gold Customer Gold Customer

Joined: 12/24/2004
Posts: 33
Hi,

Using the 2 day simple moving average of the 10 day exp moving average of TSV and the 5 day exp moving average of the 2 day simple moving average above, I want to find stocks that show the 2 dsma crossing above the 5 dema.

Can you show me the PCF for that?

TIA.

RP Walker
Craig_S
Posted : Tuesday, November 15, 2005 10:06:21 PM


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Joined: 10/1/2004
Posts: 18,819
To be clear:

You have a TSV with a period of 1
You have a 10-bar exp average of this TSV
You have a 2-bar simple of the above average
You have a 5-bar exponential of the above average
You have a 2-bar simple of the above average

You want the SECOND 2sma crossing above the 5xma that it is an average of.

If the above is true... I plotted this monster and ended up with the final 5 and 2 being almost identical. This is no suprise as you are applying small averages to other averges over and over again until it is diluted to almost identical smoothed lines.

Can you give me an idea why you have this setup and what you are hoping to uncover with it?

In theory we can make a PCF for this but it is a monster and I don't want to make something you may not really need.

Help me understand this.

- Craig
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bustermu
Posted : Wednesday, November 16, 2005 7:34:23 AM
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Joined: 1/1/2005
Posts: 2,645
Craig,

You interpret the order of application of the MA's to TSV1 as:

1) EMA10
2) SMA2
3) EMA5
4) SMA2

I interpret the order of application of the MA's to TSV1 as:

1) EMA10
2) SMA2
3) EMA5

If either of us is correct, a PCF for the crossing is quite easy. Yours because the last SMA is only of period 2, and mine because no series expansion of an MA is needed.

Thanks,
Jim Murphy
Craig_S
Posted : Wednesday, November 16, 2005 7:48:40 AM


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Joined: 10/1/2004
Posts: 18,819
I think you might be right.

I read the last part of his sentance as there being another 2ma of the 5ma.

I will wait for pwalk to confirm this for me.

- Craig
Here to Help!
pwalk
Posted : Wednesday, November 16, 2005 8:39:55 AM
Gold Customer Gold Customer

Joined: 12/24/2004
Posts: 33
Bustermu is correct, I am looking for a PCF of:

a TSV with a period of 1
a 10-bar exp average of this TSV
a 2-bar simple of the above average
a 5-bar exponential of the above average

Also, I finally realized after sending my question, it would have been smart to review the topics already posted. As a long time user of TC, I know enough to be dangerous, and can probably figure out how to do it with a little more time and effort.

HOWEVER, since I have already bugged you guys, if you would, please show me the PCF.

Thanks very much!

And by the way, let me say, as a former stockbroker of 12 years, and a big self taught follower of technical analysis, without TC, I would not have the success I do in the market.
Bruce_L
Posted : Wednesday, November 16, 2005 9:28:52 AM


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Joined: 10/7/2004
Posts: 65,138
Try this:

XAVG(TSV2,10) > 9 / 5 * XAVG(TSV2,10) - 4 / 5 * XAVG(TSV2,5) AND XAVG(TSV2.1,10) <= 9 / 5 * XAVG(TSV2.1,10) - 4 / 5 * XAVG(TSV2.1,5)

-Bruce
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bustermu
Posted : Wednesday, November 16, 2005 10:43:21 AM
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Joined: 1/1/2005
Posts: 2,645
Bruce,

Is that equality a typo?

We both know we will likely never find a case where equality holds, but if we use the same form for H upcrossing C:

(H>C)AND(H1<=C1)

we will find quite a few upcrossings.

Thanks,
Jim Murphy
Bruce_L
Posted : Wednesday, November 16, 2005 10:55:41 AM


Worden Trainer

Joined: 10/7/2004
Posts: 65,138
No, it's not a typo. I usually use that form because I would rather return false positives for cases when:

X > Y AND X1 = Y1 AND X2 >= Y2

Than false negatives when:

X > Y AND X1 = Y1 AND X2 < Y2

It's possible to visually filter out the false positives, but the false negatives are never seen. I can see how somebody else might prefer the opposite however.

-Bruce
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bustermu
Posted : Wednesday, November 16, 2005 11:38:22 AM
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Joined: 1/1/2005
Posts: 2,645
OK Thanks.
pwalk
Posted : Wednesday, November 16, 2005 9:23:13 PM
Gold Customer Gold Customer

Joined: 12/24/2004
Posts: 33
Bruce L, bustermu, thanks for the help. I punched in the formula tonite, works great!
Bruce_L
Posted : Thursday, November 17, 2005 8:30:00 AM


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Joined: 10/7/2004
Posts: 65,138
You're welcome.

-Bruce
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